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Head of Market Risk Energy

Shell International
London, United Kingdom
Closing date
Oct 6, 2022

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Job Function
Corporate Finance
Industry Sector
Finance - General
Employment Type
Full Time
Where you fit in?

Shell's energy trading is a highly complex and integrated business line consisting of more than 10 different businesses trading power, gas, and related environmental products across the globe. The Head of Market Risk Energy is responsible for understanding the trading markets and strategies employed by Shell Energy and its related companies in multiple global jurisdictions.

This role reports to the Head of Market Risk Management and is a member of the Market Risk Leadership team. The purpose of the role is to independently identify, measure, and report on the level of risk from new business proposals, material contracts, and trading market conditions to advise the commercial teams on mitigation strategies and risk appetite. The role will provide risk assessments and insights to senior management while collaborating with and providing market-specific information and advice to others in the global Finance and Risk Management organization while driving consistency in methodologies and processes across the various business lines.

The Energy Market Risk Team will provide an independent view as to whether the organization is receiving appropriate compensation for the risk they are taking.

What's the role?

The role works closely with risk leads for all parts of the risk management spectrum including a significant Business Operations component, regular discussions with the Front Office, Finance, Compliance, and Back Office, and a focal point for gas and power risk-related queries from across the RDS group.

Responsibilities include
  • Derive a vision for the team to aspire to and define a clear path to achieve the Energy Risk Team's purpose and responsibilities, with milestone achievement steps along the way.
  • Actively manage resources & processes to optimise the efficient analysis of risk across the portfolio, manage change and prioritise accordingly.
  • Ensuring that error-checking is a natural part of all processes, so the output is 'Right First Time'
  • Accelerate digitalization and automation to smooth the flow of information across the business and to remove manual tasks.
  • Carry out the review and execution of SOX controls within their organization and manage communications with auditors after they are completed.
  • Ensure that all exposures generated are fully understood and that these exposures and resultant P&L are properly evaluated, validated, and analysed prior to any income being reported.
  • Work with the Valuation and Quantitative Analytics teams to understand and model embedded physical optionality and how optimization of physical portfolios changes exposures.
  • Provide independent advice and guidance on the level of risk/return in the business and whether this is congruent with the agreed level of risk appetite.
  • Identify risks, look at model and portfolio assumptions, market inputs, pricing issues, valuation parameters, and instrument types.
  • Assist in limit setting & monitoring of the gas and power businesses, but equally, play a key role in limit setting globally across the Trading and Supply business.
  • Develop and apply fair economic value principles across the gas and power businesses, coordinating across the global risk managers to ensure consistent application. This includes providing modelling support and challenge with stakeholders on valuation inputs and parameters.
  • Implement Shell's best practices in commodity trading risk management.
  • Ensure that all trading activities remain within mandated limits and escalate appropriately if they are exceeded.
  • Drive understanding of the design and utilization of methodologies to assess risk/reward of the portfolio, including VaR back-testing, stress testing, scenario analysis, liquidity analysis.
  • Understand and explain changes in VaR by breaking down the impact by its underlying drivers and ensuring that the VaR accurately reflects the positions taken and volatility of the relevant market.
  • Participate in and help set the agenda for the quarterly Risk Committee meetings with Senior Leadership. Powerpoint skills to produce presentations for Executive level presentations.
  • Clarify accountabilities and simplify interfaces to allow the smooth running of the team.
  • Ensure that Market Risk fulfills its role as an independent "check and balance" function and is viewed as such by other parts of the organization.
  • Promote a culture of continuous improvement across all levels of the organization by having the courage to challenge established processes. This includes identifying inefficiencies in local and global operations and opportunities to streamline and automate shared processes and interfaces.
  • Define and advance analytical mindset and behaviours by providing support for training and learning opportunities to analysts to enhance their understanding of trade book strategies, complex deals, trading and risk mandates, and market fundamentals.
  • Attract, develop and retain top talent; includes identifying future leaders within the Market Risk team. Enable continuous professional development and timely training for risk professionals

  • Capable of being independent of the front office; able to objectively analyse and report risks and exposures. Regularly engage in discussion with traders and management about exposure taken and resultant P&L.
  • Strong stakeholder engagement skills, having the self-confidence to challenge traders on deals, valuations, positions, limit mandates.
  • Excellent communication skills, the role will require writing reports and policies and presenting analysis and insights to senior stakeholders. Due to the global nature of the business, the role requires communicating using different methods, in a variety of formats, to people in many countries.
  • Team player, good interpersonal skills. Flexible to work with colleagues across numerous time zones with both Market Risk at the Trading Hubs in the Americas, Europe, and Asia, but equally the Business Operations centres in Chennai, Manilla, Bangalore.
  • Ability to articulate and communicate complex scenarios and ideas in a clear and concise manner whilst understanding the perspective and experience of others.
  • This is a role for a person who brings a diversity of thought, who is not afraid to speak up, and who is comfortable challenging senior stakeholders.
  • Proactively identify and communicate potential issues with the appropriate teams or stakeholders. Make sure problems raised are followed up and worked on until completion.
  • Ability to challenge sensitive issues constructively whilst maintaining working relationships.
  • Able to collaborate and produce good quality output using virtual chains of command.
  • Working closely with the Credit and other Risk teams to ensure trading risks and returns are fully understood, captured, and challenged where necessary. This will also include longer-term risks, inherent in contracts such as, but not limited to, storage, pipelines, cross-border transmissions, tolling agreements.
  • The role works closely with risk leads for all parts of the risk management spectrum including a significant Business Operations component. The incumbent is tasked with ensuring that the business that they cover is widely understood and that any changes to it or the supporting risk management framework are communicated properly to all stakeholders.
  • Ability to coach and mentor team members as well as members of other teams who require knowledge or skills that Risk can provide.

What we need from you
  • Prefer degree in Business, Economics, Mathematics, Science, Engineering or IT; other degrees considered with relevant workplace experience in the energy trading industry. Advanced degrees are a plus.
  • Thorough understanding of financial, commodity, and energy markets; derivative instruments, and hedging techniques.
  • In-depth knowledge of the infrastructure of the energy trading and supply industry such as gas fields, pipelines, power plants, power grids, energy users. An understanding of the fundamental economics and pricing mechanisms behind these physical assets and flows of energy, and the trading strategies that relate to them in multiple global jurisdictions.
  • Substantial experience within a trading and risk management organization, including a strong understanding of trading, operations, risk, compliance, and mid/back-office business processes, policies, procedures, and controls.
  • Sound understanding of current regulatory proposals and how these can impact T&S and RDS.
  • A strong proven track record in leadership in a team and business/function; leader and adviser in implementing new processes with short-dated hard deadlines.
  • Reliable, dependable, and disciplined. Excellent attention to detail, methodical, organized. A trusted partner of the business.
  • Resilient when working under pressure, with the ability to prioritise tasks to meet key deadlines.
  • Good judgment to provide advice, question discrepancies, escalate issues.
  • Continuous improvement mindset: utilizing tools to streamline and automate work to boost efficiency.
  • Candidates shall possess extremely good judgment and shall be able to provide advice while balancing risk and value daily.
  • Scientific mindset: identify, investigate, analyse, research, discuss, record, and resolve issues.
  • Learner mindset; innovative and creative, excellent problem-solving capabilities.
  • A critical and strategic thinker, with a long-term view on risk but with a short-term and pragmatic view on implementation.

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